Analyzing the Impact of the Associate Salary Increase at Top Law Firms

 

Summary

The legal profession is making headlines this month with associate salary hikes across the country. With major firms announcing big changes to their compensation structure for first-year associates, many attorneys and firms alike are wondering what this means for them.

This article examines the recent associate salary hikes, where they are happening, and the potential impacts that these changes could have on the legal industry.


The most significant salary hikes have been announced by the largest law firms. Prominent names like Skadden have increased their first-year associate salaries to $190,000. Cravath, the nation’s largest law firm, has also made major changes to its compensation structure, including a major salary increase to $180,000. Other prominent firms like Latham & Watkins, Jenner & Block, and Weil, Gotshal & Manges have all increased their first-year associate salaries to $190,000.

These salary hikes may have a significant impact on the legal profession. For the associates, this pay increase could bring financial relief and stability to the profession. Likewise, the firms can bring in higher-caliber talent and retain their best associates.

At the same time, others are wondering what this means for the industry as a whole. As the large firms increase their associate wages, smaller firms may also have to compensate their staff accordingly. This could lead to an increase in overhead and create an unlevel playing field between small and large firms.

Organizations like the ABA are already making moves to address this issue. The ABA has proposed an increase in the salary for first-year associates at smaller firms to bring the wages more in line with larger firms.

This article describes the associate salary hikes that have recently happened in the legal industry and discusses the potential impacts that these changes could have on the profession. Large firms have increased their first-year associate salaries up to $190,000, while the ABA is proposing an increase in salary for smaller firms. These changes could bring financial relief and stability to associates, while also creating an unlevel playing field between small and large firms.
 

Associate Salary Hike

Law firms across the US are giving their associates a salary bump. Law firms in large markets like New York and D.C. have been leading the way, but firms in other parts of the country are following suit.

In February 2020, several New York firms made the decision to increase their associate salaries to match the salary increases granted by several of their competitors. Sullivan & Cromwell, Akin Gump, and Cravath all raised their pay scales, with Cravath leading the way by offering starting salaries at $190,000 for incoming associates.

The salary increases were quickly followed by other firms across the country, with firms in Los Angeles, San Francisco, and Chicago also jumping on board.

The associate salary hikes have been most pronounced in the larger markets, with firms in California, New York, and D.C. leading the way. However, firms in other parts of the country have followed suit, with many mid-sized and even small-market firms raising associate salaries.

The associate salary hikes are a result of a tighter labor market, where demand for skilled attorneys is increasing. In addition, it's also a result of competition between firms as they compete for top talent.

Naturally, bloggers have weighed in on what these salary increases mean. Eric Turkewitz of New York Personal Injury Blog views the recent increases as a wake-up call for increasing judicial pay, noting that at $160,000 a year plus bonus, first-year associate salaries surpass those of federal judges (who make $162,500 annually).

Peter Smith of Counsel to Counsel warns that the $160,000 salaries may be nice, but there is a catch:
 

• These increases often tie back to The Cravath Scale: A Benchmark in Legal Profession Compensation, the reference point for BigLaw associate pay.

No, it is not just "more hours." Associates and partners alike are already putting in "more hours." What this really signifies is that the "class" distinctions between lawyers are widening, and there will be no reversal of that trend....

This means that competition for the best talent will only continue to spiral. But more importantly, there will be less and less room for error. Associates at premier firms are already walking across a tight rope. That won't change—although the wire is getting higher and higher. The real, rubber-hits-the-road change, is that the safety net for those who falter is getting smaller, and farther away. Why? The largest firms are not only international powerhouses, of course, but they are grabbing up the premier domestic work. The market of "safety-net" firms has, and will continue to shrink. Bottom line: blink and you will be out of the promised land, your salary will shrink by a third, perhaps more, and the doors to ground-breaking work will be increasingly closed to you. You'll be on the outside, looking in, and the glass is getting thicker. Enjoy the money. No pressure.


About Harrison Barnes

No legal recruiter in the United States has placed more attorneys at top law firms across every practice area than Harrison Barnes. His unmatched expertise, industry connections, and proven placement strategies have made him the most influential legal career advisor for attorneys seeking success in Big Law, elite boutiques, mid-sized firms, small firms, firms in the largest and smallest markets, and in over 350 separate practice areas.

A Reach Unlike Any Other Legal Recruiter

Most legal recruiters focus only on placing attorneys in large markets or specific practice areas, but Harrison places attorneys at all levels, in all practice areas, and in all locations-from the most prestigious firms in New York, Los Angeles, and Washington, D.C., to small and mid-sized firms in rural markets. Every week, he successfully places attorneys not only in high-demand practice areas like corporate and litigation but also in niche and less commonly recruited areas such as:

• Immigration Law
• Workers Compensation
• Insurance
• Family Law
• Trust and Estate
• Municipal law
• And many more...

This breadth of placements is unheard of in the legal recruiting industry and is a testament to his extraordinary ability to connect attorneys with the right firms, regardless of market size or practice area.

Proven Success at All Levels

With over 25 years of experience, Harrison has successfully placed attorneys at over 1,000 law firms, including:

• Top Am Law 100 firms such including Sullivan and Cromwell, and almost every AmLaw 100 and AmLaw 200 law firm.
• Elite boutique firms with specialized practices
• Mid-sized firms looking to expand their practice areas
• Growing firms in small and rural markets

He has also placed hundreds of law firm partners and has worked on firm and practice area mergers, helping law firms strategically grow their teams.

Unmatched Commitment to Attorney Success - The Story of BCG Attorney Search

Harrison Barnes is not just the most effective legal recruiter in the country, he is also the founder of BCG Attorney Search, a recruiting powerhouse that has helped thousands of attorneys transform their careers. His vision for BCG goes beyond just job placement; it is built on a mission to provide attorneys with opportunities they would never have access to otherwise. Unlike traditional recruiting firms, BCG Attorney Search operates as a career partner, not just a placement service. The firm's unparalleled resources, including a team of over 150 employees, enable it to offer customized job searches, direct outreach to firms, and market intelligence that no other legal recruiting service provides. Attorneys working with Harrison and BCG gain access to hidden opportunities, real-time insights on firm hiring trends, and guidance from a team that truly understands the legal market. You can read more about how BCG Attorney Search revolutionizes legal recruiting here: The Story of BCG Attorney Search and What We Do for You.

The Most Trusted Career Advisor for Attorneys

Harrison's legal career insights are the most widely followed in the profession.

• His articles on BCG Search alone are read by over 150,000 attorneys per month, making his guidance the most sought-after in the legal field. Read his latest insights here.
• He has conducted hundreds of hours of career development webinars, available here: Harrison Barnes Webinar Replays.
• His placement success is unmatched-see examples here: Harrison Barnes' Attorney Placements.
• He has created numerous comprehensive career development courses, including BigLaw Breakthrough, designed to help attorneys land positions at elite law firms.

Submit Your Resume to Work with Harrison Barnes

If you are serious about advancing your legal career and want access to the most sought-after law firm opportunities, Harrison Barnes is the most powerful recruiter to have on your side.

Submit your resume today to start working with him: Submit Resume Here

With an unmatched track record of success, a vast team of over 150 dedicated employees, and a reach into every market and practice area, Harrison Barnes is the recruiter who makes career transformations happen and has the talent and resources behind him to make this happen.

A Relentless Commitment to Attorney Success

Unlike most recruiters who work with only a narrow subset of attorneys, Harrison Barnes works with lawyers at all stages of their careers, from junior associates to senior partners, in every practice area imaginable. His placements are not limited to only those with "elite" credentials-he has helped thousands of attorneys, including those who thought it was impossible to move firms, find their next great opportunity.

Harrison's work is backed by a team of over 150 professionals who work around the clock to uncover hidden job opportunities at law firms across the country. His team:

• Finds and creates job openings that aren't publicly listed, giving attorneys access to exclusive opportunities.
• Works closely with candidates to ensure their resumes and applications stand out.
• Provides ongoing guidance and career coaching to help attorneys navigate interviews, negotiations, and transitions successfully.

This level of dedicated support is unmatched in the legal recruiting industry.

A Legal Recruiter Who Changes Lives

Harrison believes that every attorney-no matter their background, law school, or previous experience-has the potential to find success in the right law firm environment. Many attorneys come to him feeling stuck in their careers, underpaid, or unsure of their next steps. Through his unique ability to identify the right opportunities, he helps attorneys transform their careers in ways they never thought possible.

He has worked with:

• Attorneys making below-market salaries who went on to double or triple their earnings at new firms.
• Senior attorneys who believed they were "too experienced" to make a move and found better roles with firms eager for their expertise.
• Attorneys in small or remote markets who assumed they had no options-only to be placed at strong firms they never knew existed.
• Partners looking for a better platform or more autonomy who successfully transitioned to firms where they could grow their practice.

For attorneys who think their options are limited, Harrison Barnes has proven time and time again that opportunities exist-often in places they never expected.

Submit Your Resume Today - Start Your Career Transformation

If you want to explore new career opportunities, Harrison Barnes and BCG Attorney Search are your best resources. Whether you are looking for a BigLaw position, a boutique firm, or a move to a better work environment, Harrison's expertise will help you take control of your future.

Submit Your Resume Here to get started with Harrison Barnes today.

Harrison's reach, experience, and proven results make him the best legal recruiter in the industry. Don't settle for an average recruiter-work with the one who has changed the careers of thousands of attorneys and can do the same for you.

About BCG Attorney Search

BCG Attorney Search matches attorneys and law firms with unparalleled expertise and drive, while achieving results. Known globally for its success in locating and placing attorneys in law firms of all sizes, BCG Attorney Search has placed thousands of attorneys in law firms in thousands of different law firms around the country. Unlike other legal placement firms, BCG Attorney Search brings massive resources of over 150 employees to its placement efforts locating positions and opportunities its competitors simply cannot. Every legal recruiter at BCG Attorney Search is a former successful attorney who attended a top law school, worked in top law firms and brought massive drive and commitment to their work. BCG Attorney Search legal recruiters take your legal career seriously and understand attorneys. For more information, please visit www.BCGSearch.com.